Although cities across the state are finding tax raises are necessary to fund needed improvements in a harsh economic climate, Russellville has been largely sheltered from tight economic strains — a trend local officials said is in part due to the city’s one-cent sales tax measure, implemented several years ago.

“Sure, primarily that’s a big part of it,” Mayor Bill Eaton said. “The second part of that formula is we budgeted very conservatively. We have not increased our budget hardly at all over the past three years, and each department head has really watched their budget very closely and we’ve not had to go out and over-extend anywhere. We’ve been fortunate in that regard.”

Although Russellville residents and shoppers have paid a one-cent sales tax since 1993, the city itself has only received revenues from the tax since 2003. From 1993-2002, a one-cent citywide sales tax was in place, but funds were used for a number of expansion projects and debt retirement for City Corp., the city’s water and sewer utility.

The tax was approved by vote in 2002, with collections beginning in 2003, when the previous tax for City Corp. expired. The tax approved by voters called for seven-eighths of each cent to be dedicated to street and drainage projects and the other one-eighth to economic development efforts.

In 2007, that tax was up for renewal. Again, voters said “yes” to the continuation of the city’s one-cent sales tax for six more years. This time, the money was split in several different directions — streets and drainage, land purchase for the proposed convention center and hotel, economic development, the city’s Recreation and Parks Department and the renovation of City Hall.

In March 2010, the collections for the convention center, Recreation and Parks and City Hall expired. At that point, the one-cent tax reverted back to the original seven-eighths for street and drainage and one-eighth for economic development.

The amount collected for streets and drainage alone since 2003 — nearly $38 million — is nothing to sneeze at, and other Arkansas cities are beginning to see the need for such revenues to fund capital improvements.

The Associated Press’ Andrew DeMillo reported that in Arkansas, 16 communities have brought sales tax proposals to their voters so far this year, and 14 have passed. Several other cities have tax hikes in the works.

The hikes have been approved in rural towns like Carlisle, population 2,300, DeMillo reported. They’ve been approved in traditionally Democratic areas such as Wynne and Republican strongholds like Berryville. One just passed in Little Rock, the state’s capital and biggest city, the first increase there since 1994. The measures have gone to pay for police salaries, a new fire station, parks and community centers. Little Rock city leaders even sold the idea of a new $6 million fund to recruit businesses.

Some local officials are almost surprised by the overwhelming response.

“It’s a real anti-tax environment,” said Carlisle Mayor Ray Glover, who won 58 percent approval for a 7/8 percent sales tax increase. “It’s the worst time I’ve seen in my lifetime.”

Voters, regardless of their politics, seem to have accepted the basic deal in most communities, said Arkansas Municipal League Executive Director Don Zimmerman.

“If they’re going to have those services, then they’re going to have to find a way to pay for them,” he said.

One of the major aspects setting Russellville apart from other communities in the state is while other municipalities are working to raise taxes, Eaton is considering lowering them. The current one-cent tax is set to expire in 2013, and would have to be approved by voters to be renewed.

“We’re looking at what we can do to package this and continue it, but probably not at the current rate of one cent,” Eaton said. “We’re looking at reducing that and making it a little more appealing to the general taxpayer out there.”

Perhaps city officials believe the tax must be reduced to be renewed. Alderman Garland Steuber admitted he is concerned about voters rejecting the tax renewal.

“If we fail to get that tax renewed, I just — unless someone has a plan that I don’t know about — I just think we’re gonna really see our streets and drainage suffer.”

Steuber said he couldn’t speculate as to exactly what would happen if the tax was not renewed, but said the city would have to come up with alternative funding sources to complete capital improvements.